| ||||||||||||
| ||||||||||||
| ||||||||||||
| ||||||||||||
|
Country Commercial Guides for FY 2000:
|
CHAPTER V: LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT
BEST PROSPECTS FOR NON-AGRICULTURAL GOODS AND SERVICES
Telecommunications, petroleum, mining and transportation sectors will be undergoing major reinvestment programs over the next 5-10 years, using multilateral as well as bilateral assistance. U.S. makers of telecommunications equipment, road-building and repair machinery, automotive spare parts, lubricants, hardware and civil aviation equipment are well-positioned to benefit. The mining sector, including petroleum, offers an attractive market as planned reforms of the mining code open the country to greater investment.
Due to its renowned biological diversity and unique plant and animal life, Madagascar holds great potential for eco-tourism and environmentally sensitive technologies. The country still has very poor infrastructure in the hospitality industry however, and its low per capita income puts some new technologies out of reach unless development assistance funding or bilateral export financing options exist.
The following products/services can be classified as best prospects for U.S. exports or investment:
1. ITA CODE: TEL: TELECOMMUNICATION EQUIPMENT
The government's objective is to improve service, lower costs, expand user access, increase the economy's competitiveness, and attract private capital. To this end, the government has amended the legislative and regulatory framework to liberalize the sector and to authorize unrestricted entry of new providers. Following an international call for bids launched for the purpose of identifying several mobile telephone providers with unrestricted access to the international network, three enterprises have been authorized to operate (from Malaysia, Reunion and France). Telecel, an American company, has been providing cellular services for the past five years with financing from OPIC.
2. ITA CODE: OGS: OIL, GAS, MINERAL PRODUCTION/EXPLORATION
The liberalization of the petroleum sector became effective in 1996, and following an international call for bids, several oil companies came to Madagascar to prospect for petroleum and/or natural gas. Foreign companies are invited to participate on an equal footing in an infrastructure management entity (storage, unloading of vessels). Hunt Oil and a Canadian company, Gulfstream, were granted oil & gas exploration permits by the Malagasy government in 1997. On the distribution sector, the state oil company SOLIMA will be privatized in 1999, so the gas distribution activities could be a good prospect for investment.
3. ITA CODE: MIN: MINING PRODUCTION/EXPLORATION
The top priorities of the Government in the mining sector are the liberalization of the sector and the withdrawal of the Government.
This strategy is intended to lead to: (a) the elimination of direct government intervention, rationalization of the licensing system and a reduction of the rate of royalties and taxes on mining products; (b) the implementation of mining legislation designed to promote large mining operations by attracting domestic and foreign investors; (c) the development of a partnership for small- and medium-sized operators; (d) the rehabilitation of the industry at the central and regional government levels; (e) the privatization of gold mines operated directly by the government and (f) the provision of national geological data to investors, mine operators, and researchers. The mining products for potential investment are ilmenite sands, nickel, cobalt, sapphires, gold, emeralds, and graphite.
A new mining law was approved by the Government in 1999 and sent to the National Assembly for approval. In addition, the Government is now preparing another law to promote mining projects of more than $200 million.
BEST PROSPECTS FOR AGRICULTURAL PRODUCTS
The food sector is now liberalized. Wheat, flour and edible oils are the best prospects for U.S. agricultural exports and could be significant investment opportunities.
1. HEADING: 1001: WHEAT
1996 1997 1998 a. Total production n/a n/a n/a b. Total imports (million USD) 14.0 15.5 16.3 c. Total exports: none d. Imports from the U.S.: none e. Main exporters: Australia, Canada, France and Romania 2. HEADING: 1102: FLOUR 1996 1997 1998 a. Total production (in tons) 49.5 53.2 64.2 b. Total imports (million USD) 2.2 2.5 3.5 c. Imports from the U.S.: n/a d. Total exports: none e. Main partners: France, Spain, Italy 3. HEADING: 1507: SOYA OIL 1996 1997 1998 a. Total production (in tons) none n/a n/a b. Total imports (million USD) 4.0 4.5 5.3 c. Imports from the U.S.: 411,000 n/a n/a d. Total exports: none e. Main partners: Argentina, Brazil, Malaysia, Singapore, United States, Germany.SIGNIFICANT INVESTMENT OPPORTUNITIES
As stated above, investment opportunities arise from the telecommunications, petroleum and mining sectors.
The government of the United States acknowledges the contribution that outward foreign direct investment makes to the U.S. economy. U.S. foreign direct investment is increasingly viewed as a complement or even a necessary component of trade. For example, roughly 60 percent of U.S. exports are sold by American firms that have operations abroad. Recognizing the benefits that U.S. outward investment brings to the U.S. economy, the government of the United States undertakes initiatives, such as Overseas Private Investment Corporation (OPIC) programs, Bilateral Investment Treaty negotiations and business facilitation programs, that support U.S. investors.
|
[end of document] Note* International Copyright, United States Government, 1999 (or other year of first publication). All rights under foreign copyright laws are reserved. All portions of this publication are protected against any type or form of reproduction, communications to the public and the preparation of adaptations, arrangement and alterations outside the United States. U. S. copyright is not asserted under the U.S. Copyright Law, Title17, United States Code.
Next Chapter | Table of Contents
|
